Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/205653
Authors: 
Fabling, Richard
Gemmell, Norman
Kneller, Richard
Sanderson, Lynda
Year of Publication: 
2013
Series/Report no.: 
New Zealand Treasury Working Paper 13/29
Abstract: 
Effective marginal tax rates (EMTRs) can be very different from the statutory rate and vary across firms, reflecting such factors as the extent and nature of taxable deductions (losses, depreciation), asset and ownership structures, and debt/equity financing. We estimate firm-specific EMTRs and related user cost of capital (UCC) measures allowing for shareholder-level taxation using data for 1999/2000-2010/11 from the Longitudinal Business Database. Examining distributions of various UCC measures we find substantial firm-level heterogeneity, systematic changes as a result of tax reforms between 2004 and 2012, and systematic differences between foreign-owned and domestically-owned firms. Choices among alternative UCC measures make a difference to interpretations.
Subjects: 
User cost of capital
tax reform
EMTR
New Zealand
JEL: 
D22
G30
H25
ISBN: 
978-0-478-40390-9
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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